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Ad Valorem functions in keeping with the parameters of the property tax system in the State of Oklahoma.
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Keywords. Ad Valorem Tax Exemption, Exempt Manufacturing, Reimbursements, Asset Eligibility, Real Property, Eligible Leased Assets, Personal Property.
- Definition of A Property Tax
- Review of The Property Taxation Process
- Purpose of Property Taxation
- Ad Valorem Tax Levies
- County Government Levies
- Solid Waste Management District
- City Government Levies
- Municipal Public Utilities
- Common School District Levies
- Area (Technology Center) School District Levies
Property taxes are authorized by the Oklahoma Constitution. Both the use of a property tax and the number of mills levied are described in Article 10 of the Oklahoma Constitution as an ad valorem tax. Thus, the terms “property tax” and “ad valorem tax” are used interchangeably in Oklahoma. Ad valorem is a Latin phrase meaning “according to value.”...
Property taxation is carried out in three steps. First, the fair cash value of the property is determined. Oklahoma bases its property tax on how the property is used; therefore the fair cash value is the market value of the property in its current use. In this context, fair cash value and use value are synonymous. Secondly, the property’s assessed...
Ad valorem taxation generates revenues to support public services and projects provided by the various units of local government. The amount of revenue generated from ad valorem taxation is based on the local government’s taxable valuation and the number of mills levied for its use. Total net assessed valuation of a public entity is the taxable val...
For all ad valorem taxes, the county excise board sets the levies within the levels authorized by law. For a sinking fund the levy cannot exceed the level needed for servicing the debt. The levies are set in number of mills and certified to the county assessor who computes the property taxes and prepares a tax roll. The tax roll shows the amount o...
County General Fund
Up to 15 mills is guaranteed without a vote of the people. No less than 5 mills from the amount levied must be allocated to the common school districts within the county. The remaining 10 mills is apportioned by the county excise board. For decades now, county governments have received the remaining 10 mills. Although cities and towns within the county may also receive a portion of the 10 mills available to the county, this seldom occurs due to the needs of county government. So, in practice,...
County Building Fund
A county may raise funds to erect new buildings or remodel old ones by levying up to five (5) mills on the taxable property in the whole county. The building fund and the number of mills levied must be approved by a majority of the voters in the county in a county-wide election. Once the levy is approved, a county building fund is created as a depository for the revenues that are collected from the annual ad valorem tax. The revenues need not be spent in the year they are received.
County Department of Health
Up to two and one-half (2 1/2) mills can be levied annually to maintain a County Department of Health. The number of mills must be approved by a majority of the voters in a county-wide election. A local department of health may be maintained jointly with a city or with another county. Other revenues in addition to the ad valorem tax may be used to finance the county department of health.
Solid waste management services can be provided through an ad valorem tax. The formation of the district and the number of mills levied must be approved by the voters in a county-wide election. Up to three (3) mills can be levied for operations and maintenance. Bonds may be issued to acquire revenue to purchase a site, vehicles and other equipment,...
City Building Fund
A city or incorporated town, in the same manner as a county, may raise funds to erect new public buildings or renovate old ones by levying up to five (5) mills on the taxable property in the city. The building fund and the number of mills levied must be approved by a majority of the voters in a city-wide election. Once the levy is approved, a city building fund is created as a depository for the ad valorem tax revenues collected from the annual levy. The revenues need not be spent in the year...
City Hospital
Up to five (5) mills can be levied to operate and maintain a hospital owned by a city. The number of mills must be approved by the voters in a city-wide election. The millage can be increased following voter approval at a subsequent election, but cannot exceed five (5) mills. The tax is levied on all the ad valorem taxed property within the city limits.
City Industrial Development Fund
Cities in the same manner as counties are allowed to support industrial development by selling general obligation limited tax bonds. Up to (5) mills can be levied each year for the annual interest payments and sinking fund deposits. In any year, the city may suspend the levy if sufficient revenue is available from the industrial development project to service the debt. Both the industrial development project and the amount of the bond must be approved at a city-wide election by a majority of...
Bonded indebtedness can be incurred by a city or incorporated town to purchase, construct or repair a public utility. An ad valorem tax for this purpose and the amount of the bond must be approved by a majority of the voters in an election held throughout the city or incorporated town. The amount of the annual levy must be sufficient to cover the ...
County Apportioned School Levy
Five (5) mills of the 15 mills a county can levy without special provisions must be apportioned to the common school districts within the county. The levy is sometimes called the county apportioned school levy.
Guaranteed Levy
An additional four (4) mills is guaranteed for all school districts. This ad valorem tax is referred to as the school district guaranteed levy. The four mills are levied county-wide and are apportioned by average daily attendance within a school district. When a school district crosses county lines, the revenues collected from the levy are turned over to the county treasurer in the county with the greatest portion of the student population.
Board of Education Levy
The board of education can certify a 15 mill levy on all the taxable property in the school district. Revenue from the board of education levy is used to benefit all the schools within the school district.
A Technical Center School District can be formed following voter approval in an election held throughout the proposed district. There are several taxes which can be levied to support the area school district. Administrative control of an area technical and vocational school district is vested in the area school board. For an area technical school ...
Jan 26, 2015 · Counties can set assessment ratios for different kinds of property at between 10 and 15 percent. Mills are then applied to assessed valuation, up to maximum levels set by the Oklahoma Constitution. A mill is $1 in tax for every $1,000 in taxable value.
Jul 8, 2024 · Currently, municipalities in Oklahoma can access ad valorem funds only through public indebtedness mechanisms like general obligation bonds. The issuance of these bonds requires voter approval with a supermajority of 60%, which can delay essential projects.
People also ask
Is property tax ad valorem in Oklahoma?
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How is fair cash value determined in Oklahoma?
Property owners pay $1 dollar in ad valorem tax for every $1000 of total net assessed valuation. Where this money goes varies by county. The largest share in every county funds education. As you can see in the FY2018-2019 State Summary pie chart, schools in a county average 68.28% of all property taxes collected annually. A county’s share of ...
